Investor Salvation
A subsidiary of MBL & Associates DBA Hedgehog Consulting
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WATCH CAREFULLY, THINK LOGICALLY AND RESPOND ACCORDINGLY
THEORY OF DIMINISHING RETURNS: We have constantly proven dollar-cost-averaging is a flawed strategy arising from misadvise by experts who asset its best in the long term. This remains blatantly false when the bulk of buying is always done into tops from relaxed margin oversight. The public unaware or ignorant as firms alter margin requirement to protect themselves. (Reuters) 10/21/08 -In a season of chilling numbers is this one: American households have lost something in the order of $7 trillion of wealth this year alone
Eventually investors are forced to pay with hard dollars adding albeit in smaller units as they discover cheap gets cheaper as breakeven's move further away being top heavy much like an inverted pyramid balancing itself on its point. Equally presupposed is if the underlying stock is not delisted. The only bull market is Fraud Class Action from contaminated analysis research the worse in 16 years.
QUERY: If money supposedly doubles every 10 years ... see performance result chart below
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*** 2/25/08 - WR - FROM ALERT TO NOW PANIC – CRISIS DU JOUR AND BEYOND The financial landscape is in the midst of its own PANDEMIC with ramifications not even remotely understood by the ‘powers that be’.This insidious disease can be compared to phrases like “the mother of all pandemic viruses” is in the context of corrupted software file which can infect an entire computer network.The next disaster: dividend paying stock to cancel their payout's. Since September '08 over $77 billion of canceled dividend has occurred.
The concern is COMPANIES that provide a high-yield dividend will be subject to 'enhance' their stock value, offering so-called “gratuities” particularly since they are so out of alignment with real interest rates. Efforts to prevent a dramatic loss in confidence in the world’s banking system mean that everyone, from depositors to taxpayers, is less important than attempting to salvage the “institution.” The situation today in the credit arena makes the 1929 Era look tame in comparison.
PIED PIPERS OF DESTRUCTION: Other issues that haunt markets outlined *01.07.08 Pre- RISING TO A NEW LOW: Experts that tell customers what they need to own are at one another's throat, the unspoken message remains they can't do for themselves.Brokers squabble about 'being entitled' to million dollar bonuses while the pot calls the kettle black; Citi suggested MER makes money by stealing. Now Morgan Stanley called Citi best "short play of the year for 2008. Morgan some nerve calling another bank a short play ... they're the RISKIEST bank on the street after BSC.
The investment argument proves false as to catch phrases such as 'in the long term.' Brilliant, a no-brainer unless the inevitability is the long-duration a race to the bottom during a secular decline as leading stocks lead lower. This then begs the question, If money supposedly doubles every 10 years, why then after 8-years holding and waiting is the annualized change a mere net 2.40% gain?
The above is what the goal has been so far as to long term. Now 8 years in waiting for stocks to recover only to get back to 2000 prices, holders are at best 1/2 of their worth. It's taken nearly 30-years for gold (not silver) to match its old high. The PUMP and DUMP game continues when firms upgrade at tops,locks everyone in until firms decide to downgrade at bottoms, then buy back the same shares from embattled clients. As for money doubling every7-10 years see the incredible shrinking $USD see chart below loss of real purchasing power.
The laws of returns always favor the other guys -- we just work dam hard to make sure it us and not them...remember no rally will make whole those holdings from years ago, nothing will expunge others who were defrauded -- The journey for investors ends in mortality from the obscene mongering of those who claim to be experts…
The retail investor is frustrated, starved for truth and in need of their cash more than ever. Those street-promoted TV experts still insist that "in the long term" and "dollar-cost averaging" has proven to be worse investment and of no opportunity as promised. Our own currency $USD has been a bad bet; and after a decade of waiting ... the returns from simple a CD would have a better yield.
THE 'HOUSE' MUST ALWAYS WIN OR THERE IS NO HOUSE - Investors often compare Wall Street to one giant casino. There is fair evidence of truth as PUMP & DUMP, short-term traders will no doubt attest. At one end of spectrum, institutional money managers with passive individual participants likely to embrace the long-term "investment" argument; just so long as secular up-trends remain stable.
BUBBLES can't be defused through incremental adjustments in interest rates ... Secular bears tend to run for 17 years in duration taking stocks from hyper-overvalued levels back down to deeply undervalued levels from 2000 top we have another 7 years to go before bottoming
PANICS do not destroy capital, they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." - John Stuart Mill. 18
MIRROR, MIRROR BY FRANK BARBERA, In the world of equities, stock prices as measured by the Dow Jones Industrial Average yesterday closed at a new all time high. Where stocks price in Dollar terms reach new all time highs DOW 14K, in non-dollar terms the DJIA resides 33% below its all time high seen in June 5th, 2001. Furthermore, after 8-years and counting the meter is still running on those "must own stocks" find they are only back to 1/2 breakeven levels.
MONTHLY SCOREBOARD as of Sept 30, 2008
*** 02.27.07 PRE - STRANEGLY PROHETIC DOGMA - CHUMMING FOR INVESTORS ... The facts are the facts. Investors waiting over eight years merely to get to breakeven are beyond uncomfortable having been defrauded and deceived. BROKEN PROMISE is if you work hard and play by the rules, tomorrow will be better than today. That implicit promise has been at the core of the American Experience through good times and bad; the nightmare now seems to be never-ending. Currently this bear market ferocity exceeds that of 1937
(SEE) 2009 Long Portfolio
All people die. All companies die, too. That's why 'buy and hold' is wishful thinking. Buy and hold long enough and you are sure to go broke. And die …. Eventually the undertakers and bankruptcy lawyers get you. All of the following information is irrefutable, the charts reflect the realty as investors remain trapped in those 'must own stocks' recommended at the top of 2000 again secondary top of 2007. It is never too late for a UNION between us to evaluate and develop a strategy before things get really insufferable.
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